Texas bill proposes regulation of biometric identifiers in AI applications

Texas House Bill 3755 (HB 3755), introduced on March 4, 2025 by Representative Giovanni Capriglione, proposes amendments to the state’s Business & Commerce Code to regulate the use of biometric identifiers in AI applications. ​

The bill represents a proactive step towards regulating the use of biometric identifiers in AI applications. By clarifying existing laws and introducing specific provisions for AI-related activities, the bill aims to balance the benefits of technological advancement with the protection of individual privacy and the prevention of misuse of sensitive data.

The bill defines AI as the utilization of machine learning and related technologies that process data to train statistical models, thereby enabling computer systems to perform tasks that are typically associated with human intelligence or perception. This encompasses areas such as computer vision, speech or natural language processing, and content generation. ​

A significant aspect of HB 3755 is its clarification regarding the applicability of existing regulations on biometric identifiers. The bill specifies that the current laws governing the capture and use of biometric identifiers do not apply to AI-related training, processing, or storage, provided that these activities are not conducted for the purpose of uniquely identifying specific individuals.

However, if a biometric identifier collected for AI purposes is subsequently used for a different commercial purpose, the entity in possession of the identifier must adhere to existing provisions regarding the possession and destruction of biometric data, along with associated penalties. ​

The introduction of HB 3755 aligns with a broader legislative trend in Texas to address the ethical and regulatory challenges posed by AI. In December 2024, Capriglione also introduced the Texas Responsible Artificial Intelligence Governance Act (TRAIGA), which would have established a comprehensive framework for the ethical and transparent use of AI systems in Texas, particularly focusing on high-risk AI applications in sectors like healthcare, finance, and legal services.

The act proposed the prohibition of AI systems that pose an “unacceptable risk,” such as those that manipulate human behavior, engage in social scoring, or capture biometric identifiers without express consent. ​

The legislative efforts in Texas to regulate AI reflects a growing recognition of the need to balance technological innovation with ethical considerations and individual privacy rights. Introducing bills like HB 3755 and TRAIGA indicates that Texas lawmakers intend to create a legal framework that fosters innovation while safeguarding the rights and privacy of its citizens, a trend that is aligned with the Trump administration’s position on AI regulation.

The Reason Foundation, however, said, “If passed, the bill would likely discourage innovation and investment in the state. Texas, historically considered a pro-business and pro-innovation state, risks adopting a regulatory framework that could hinder its competitiveness in the AI sector.”

The Foundation added that, “TRAIGA’s broad scope is one of its most concerning aspects. In today’s work environment, AI systems often play a supporting role in consequential decisions related to employment, finance, healthcare, housing, and insurance. However, under the bill, any AI tool used in these sectors – regardless of its actual influence on decision-making – could be subjected to costly compliance requirements … Many companies, particularly startups and mid-sized firms, may determine that the compliance costs outweigh the benefits of AI adoption. Consequently, TRAIGA risks discouraging AI implementation altogether, reducing efficiency and innovation in hiring or pushing businesses to relocate to states with more favorable regulatory environments.”

The implications of HB 3755 are significant for industries and organizations that utilize biometric data in AI applications. By delineating the boundaries of permissible use, the bill seeks to prevent the misuse of biometric information and to ensure that such data is handled responsibly. This represents an approach that not only protects individuals’ privacy, but it also promotes public trust in AI technologies that are crucial for their widespread adoption and acceptance.​

Global Policy Watch said that, “if passed, Texas would become the second state to enact industry-agnostic, risk-based AI legislation.”

As of its filing date, HB 3755 is awaiting further legislative action. Stakeholders, including businesses, advocacy groups, and the general public, are encouraged to engage in the legislative process to ensure that the bill’s provisions effectively address the complexities associated with the use of biometric data in AI.

As Biometric Update has reported, in the absence of comprehensive federal AI regulation, states will proceed with enacting their own comprehensive laws that will comprise a burdensome patchwork of competing laws.

Article Topics

AI  |  biometric identifiers  |  biometrics  |  legislation  |  Texas  |  United States